Private Passenger Automobile Insurance
Private passenger automobile insurance is a subject that everyone who owns or leases an automobile needs to deal with in one way or another.
What that means, is that most if not all states, have what is called “A Financial Responsibility Law” If you are going to drive a car, you need to be financially responsible if you injure someone or damage their property while driving a vehicle.
In most cases nearly everyone will purchase a Private Passenger Automobile Insurance policy with coverage for at least the statutory minimum limits of liability in their state. These limits in most states are $30,000 for bodily injury and $15,000 for property damage.
If you do not choose to purchase Private Passenger Automobile Insurance, you have the option to demonstrate to the DMV that you can post a bond for the minimum limits, or that you have a letter of credit from a bank for those limits.
Besides the liability coverage Automobile insurance provides physical damage coverage for your vehicle usually up to the replacement cost. There are two parts to the physical damage coverage for vehicles: comprehensive coverage and collision coverage.
- Comprehensive Covers theft and damage to the car other than collision.
- Collision Covers damage to the vehicle from being hit by another vehicle or for hitting another object.
Both of these coverages will usually have a deductible applied to any claim. This deductible can range from low as $25 to higher deductibles of several thousand dollars. The lower the deductible the higher the premium is for the physical damage part of the policy.
In addition to liability and physical damage, most auto policies also include coverage for “Uninsured Motorists” in case you are hit by someone with no automobile liability coverage.
You can also purchase a coverage called “Medical Payments” which is an amount that can be used by the insured for immediate medical expenses for anyone involved in an accident.
There is also other coverage that you can add to your automobile policy to cover you if you need to rent a car. This coverage can cover both the liability and the physical damage for a rental vehicle.
Private Passenger Automobile Insurance is something that we all have to deal with. It is necessary if you are going to operate a vehicle responsibly.
Let Schweickert & Company located in Irvine, CA help you find the right insurance program for you and make sure that you are properly protected.
If there is anything that you are not totally satisfied with regarding your auto insurance, please complete the quote request or call us and let us help you with this important coverage.